What Taxes Apply When You Import to Sri Lanka?
When goods arrive in Sri Lanka, they are subject to multiple taxes layered on top of each other. The key levies in 2026 are:
Some goods may attract only Customs Duty and VAT; others attract all five levies. The effective total tax rate can range from 18% to over 100% depending on the product.
How to Find the Right HS Code
The Harmonised System (HS) code is the 8–10 digit classification number that determines which duty rate applies to your goods. Sri Lanka uses the Sri Lanka Harmonised Commodity Description and Coding System (SLHS), which is aligned with the global HS 2022 framework.
To find your HS code:
Misclassification is the most common cause of delays and penalties at Colombo Port.
Step-by-Step: Calculating Landed Cost
Let's calculate the total import cost for electronics goods worth USD 10,000 CIF Colombo, with an HS code attracting 15% Customs Duty, 7.5% PAL, and no CESS.
Assume USD 1 = LKR 300 for simplicity.
Step 1 — CIF Value in LKR: USD 10,000 × 300 = LKR 3,000,000
Step 2 — Customs Duty: 3,000,000 × 15% = LKR 450,000
Step 3 — PAL: 3,000,000 × 7.5% = LKR 225,000
Step 4 — VAT Base: CIF + CD = 3,000,000 + 450,000 = LKR 3,450,000
Step 5 — VAT: 3,450,000 × 18% = LKR 621,000
Step 6 — Total Taxes: 450,000 + 225,000 + 621,000 = LKR 1,296,000
Step 7 — Total Landed Cost: 3,000,000 + 1,296,000 = LKR 4,296,000 (effectively 143% of CIF value)
FAQ: Sri Lanka Import Duties
Are any goods duty-free in Sri Lanka?
Yes. Raw materials and inputs for export-oriented industries may qualify for duty concessions or duty suspensions. Certain items under free trade agreements (ISFTA with India, PSFTA with Pakistan, ASFTA with ASEAN) also attract reduced rates with a valid Certificate of Origin.
Can I recover VAT on imports?
VAT-registered businesses can claim input tax credits on import VAT against their output VAT liability. If you hold a Suspended VAT (SVAT) certificate, you can import without paying VAT upfront.
What is the duty on vehicles imported to Sri Lanka?
Vehicles attract the highest duty burden in Sri Lanka — typically 100–300% effective tax rate depending on engine capacity and type. Contact us for a vehicle import cost estimate.
Does Sri Lanka have a de minimis threshold?
Low-value shipments below LKR 10,000 CIF may be cleared informally, but this is discretionary. Most commercial shipments are fully assessed.
Use Our Customs Duty Calculator
Freight Express Logistics offers a Sri Lanka Customs Duty Calculator for subscribers, covering all 8,999 active HS codes from the 2026 tariff guide. Contact us or log in to the dashboard to calculate landed cost for your specific product.